do i need a tax id for investing in stocks online (non professional)

hi.
i'm a german currently living in bulgaria. i have a residency permit and no residency in germany or anywhere else.
now if i want to trade/invest stocks online, do i have to apply for a tax id in bulgaria, and if so does anybody know where, how and how long it takes?
also does anybody know a reliable cheap online discount broker? i would do stocks mostly, etfs, etc.,
definitly no forex or highly speculative stuff...

i was trying to set up an account with degiro (vastly ceap prices), but they dont accept residents. from bulgaria...:(

cheers, malone

Hi Malone,

Everything depend from 2 factors:
1) Do you have a labor contract from which you receive a monthly salary?
2) How much do you thing it will be the monthly turnover of your trading?

If you have a labor contract you already have a tax ID where your profit are taxed and so you don’t need to ask for nothing else, just start to trade.
If your trading turnover is times more than your salary, you will need to make an annual declaration for this.
If you don't have a labor contract and you are not registered in the tax system, it’s a very easy step to do so and then you will have to declare you profit from the trading.

hello Stefano,
thank you for your reply.
i do not have a labor contract.
nor do i have a company, nor do i do any kind of freelance work at the moment.
so if i understand you correctly, i can just trade ahead and when it is time to make an anual declaration of income (which i guess is after a calendar year), i can easily get a tax id number (and should do so, otherwise it would be tax fraud)?

assuming i make more winnings than losses of course :)

(how you have a residency permit without a labor contract nor a company? :D)

The point is that if you are trading in a "third-party platform", you can keep your winnings there. When you will transfer your winnings to any bank accounts, you will need to declare them as they need to be taxed, so before doing that you will need a tax id.

stefano_sofia :

(how you have a residency permit without a labor contract nor a company? :D)

i'm a eu citizen. all i need is a rental contract, proof of funds, proof of insurance to get long term residence certificate.

now, afaik the country where you have your residence is where you are obliged to pay income tax.
where you keep your money (which bank or country) is imho completely irrelevant (pretty sure about that).

Yes sorry I just assumed you were not-eu, dunnow why :D

You will have a personal number for tax on your long term residency card, EU citizen or not.

guyjones :

You will have a personal number for tax on your long term residency card, EU citizen or not.

hi.
on my former residence card (good for one year) i had a personal nr. and a document nr.
that one expired couple weeks ago so i went to immigration to renew or better reapply.
this time i only got a residence certificate (in size of a credit card, made of thick paper). i didnt bother applying for a card with photo since it is optional and i wouldnt know of any benefits.
on that certificate is only a 5 digit nr. which sure is not a tax nr.

b.t.w. if necessary applying for the residency id sometimes later shouldn't be a problem right?

Yeah, it’s not a 5 digit number, surprised you didn’t just get a long term residency with the plastic card, which has the tax ID. Can’t you go through that process, there is a good solicitors in Plovdiv that takes you through the process in 24 hours, google Bulgarian ID and it will be the top search result.

thats becausr i only had a one year rental contract, so they gave me only 1 year vadility.
this time however i again have a rental contract for one year, but the certificate is valid until my health insurance expires, which is in about 3 years

i dont think i need a solicitor for that, just go to immigration and apply for the id card... should be painless...

Shouldn’t have made a difference, I only had a pre-contract agreement that was never formalised, I got a long term residency to bypass brexit issues without living there. Use the bulgarian ID company in Plovdiv, they will enable you to get a tax number. mailto:office[at]bulgarian-id.com

Every member of the EU is entitled to a 5 year residency, I would pay extra to make sure you don’t go through the problems you face. What’s €900 these days anyway

Are you an EU citizen or EU resident, that’s the only thing I can think of.....for you not having the long term residency

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